Don’t forget to re-start your VAT payments

Earlier during the Covid 19 pandemic, the Chancellor allowed VAT-registered businesses to defer payments for three months. The scheme, which ended on 30 June was intended to relieve some financial pressure, leaving a bit more cash to help hard-pressed businesses make ends meet.

It’s important to remember, though, that this wasn’t a VAT ‘holiday’. Any VAT payments that have been deferred must be paid in full by 31 March 2021, and any cancelled direct debits should be restarted in time for HMRC to take payments as normal from now on.

The VAT deferral scheme has now come to an end, but some businesses may still be eligible for support through HMRC’s Time To Pay service. For more details, see the government website at

https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19